5. Regional Trade in South Asia: An International Legal Analysis

Abstract

Regional Trade Agreements (RTAs) are a major and perhaps irreversible feature of today’s Multilateral Trading System (MTS). The number of preferential agreements as well as the world share of preferential trade has been steadily increasing over the last ten years, and slow progress in multilateral trade negotiations under the Doha Development Round accelerated the rush to forge RTAs further. The present chapter is aimed at highlighting the different views on the motivations behind the formation of RTAs, the reason for their proliferation, their impact on international trade, and finally their effect on the MTS. It also examines the significance of South Asian Free Trade Area (SAFTA), its working potential, and its shortcomings.